MGM Mirage and Kerzner go 50/50 on new Strip venue
MGM Mirage and Kerzner International Holdings Limited have announced that they are to embark on a joint venture to develop a multi-billion dollar resort on the world-famous Las Vegas Strip.
Under the terms of the agreement, MGM Mirage will provide the land for the project, currently valued at around $20 million per acre, while Kerzner and one of its own financial partners will provide the cash equity.
The new venue will be located on the corner of Las Vegas Boulevard and Sahara Avenue and, while both parties said that they expected the project to last three years, no details of the proposed resort, including its branding, have yet been confirmed.
“This is an exciting opportunity for our company,” said Jim Murren, President, CFO and Treasurer of MGM Mirage.
“This is a prime location in the heart of a rapidly developing area of the Las Vegas Strip. Partnering with a highly respected global resort operator on such a prime piece of Las Vegas real estate will certainly result in a spectacular project.
News of the development comes soon after MGM Mirage’s majority stakeholder Kirk Kerkorian announced that he has abandoned his plans to buy two of the firms biggest venues, the Bellagio and CityCenter, with his own holding company.